The government on December 28 doubled export incentives for onion farmers to 10 per centNew Delhi:The government has recently announced a series of measures to try to win over farmers, small business owners and less well-off, after ruling party suffered setbacks in state elections and with a general election due in months.The measures are likely to be a drain on finances in Asia's third-biggest economy, where Prime Minister Narendra Modi's government is trying to stick to a decade-low fiscal deficit target of 3.3 per cent of gross domestic product.But PM Modi's ruling Bharatiya Janata Party (BJP) has promised even more perks ahead of general election, which must be held by May."They will be for development, they will be for transformation," Ravi Shankar Prasad, minister for law, justice, and information technology, told Parliament this week, referring to inducements for electorate."Who wins or loses, people will decide.
We are confident when elections happen, country's public will again give a big majority to ruling coalition led by Narendra Modi."News agency Reuters reported this week that Reserve Bank of India could transfer an interim dividend of Rs 30,000 crore-Rs 40,000 crore ($4.3 billion-$5.8 billion) to government by March to help meet fiscal deficit target as spending rises ahead of election.Following are steps government has taken, in addition to proposals for farm-loan waivers worth billions of dollars after main opposition Congress defeated BJP in Madhya Pradesh, Rajasthan and Chhattisgarh in state assembly elections late last year.Help for small businessesThe government on January 10 announced a change in Goods and Services Tax (GST) rules that would exempt an additional 20 lakh small businesses.Businesses with annual sales of up to Rs 40 lakh ($56,700) will be exempt from GST.
Currently, firms with an annual turnover of up to Rs 20 lakh are exempt.
The change will come into effect in April.Help for farmersPM Modi is considering three options for a relief package to help farmers suffering because of low crop prices at a cost of as much as Rs 3 lakh crore ($42.82 billion), according to three government sources.
The possibilities are a direct payment to all landowning farmers, compensation for those who sold produce below government prices, and a loan forgiveness programme.Job reservationParliament passed a landmark bill on Wednesday reserving 10 per cent of government jobs for people outside high-income brackets.
Under amendment to constitution, floated by BJP, people with an annual income of less than Rs 8 lakh ($11,355), and owning less than five acres of land, would be eligible.OnionsThe government on December 28 doubled export incentives for onion farmers to 10 per cent, following a steep drop in prices of important staple.
The export incentive programme allows farmers to get credit from government, which can be used to pay various taxes.E-commerce rulesThe government said on December 26 it would ban e-commerce companies such as Amazon.com and Walmart-owned Flipkart Group from selling products from companies in which they have an equity interest.The rule will be applicable from February 1, and came after complaints from retailers and traders, who say big companies are using their control over inventory from their affiliates, and through exclusive sales agreements, to create an unfair market that allows them to sell some products at very low prices.Sales tax cutOn December 22, government slashed sales tax rate on more than 20 items - including televisions, batteries and movie tickets - aiming to appeal to traders and middle class.